China Security & Surveillance Technology, Inc. Receives Government Approval to Officially Close the Shanghai Cheng Feng Acquisition

SHENZHEN, China, Dec. 19 /Xinhua-PRNewswire/ -- China Security &

Surveillance Technology, Inc., "China Security" (OTC Bulletin Board: CSCT), a

leading provider of digital surveillance technology in China, announced today

that the Company recently received official approval from the Shanghai

Industry and Commerce Bureau regarding the closing of the acquisition of

Shanghai Chengfeng Digital Technology Co. Ltd. "Cheng Feng", which was

initially announced on July 7, 2006.

As part of the closing of the acquisition, China Security will pay cash

consideration of approximately $6.25 million (equivalent of RMB 50 million)

and 1,331,376 shares of restricted common stock, in addition to the $1.25

million in cash paid last quarter. Under the share transfer agreement, the

stockholders of Cheng Feng will pledge to China Security approximately $2.50

million (equivalent of RMB 20 million) worth of China Security common stock to

secure a "make good" obligation made by such stockholders to China Security,

which targets a range of between approximately $1.25 million to $1.88 million

in net income for the Cheng Feng business for 2006 and approximately $2.0

million to $3.13 million in net income for the Cheng Feng business in 2007.

The net income contribution from Cheng Feng is not included in the previously

disclosed make good that China Security made to certain of its investors for

2006 and 2007. For more disclosure relating to the Cheng Feng make good

provision please refer to the 6-K filed by China Security with the SEC on July

7, 2006.

"We are very pleased to officially complete the purchase of Shanghai Cheng

Feng, which significantly improves the depth of our intellectual property

portfolio and enables us to offer one of the most comprehensive security and

surveillance packages in the market, while further diversifying our

distribution footprint," commented Mr. Tu Guo Shen, Chief Executive Officer of

China Security. "Mr. Shufang Yang, the founder of Cheng Feng, was recently

appointed as Chief Operating Officer for China Security and his experience

surrounding the industry and technology will serve to further strengthen our

senior management team."

About Cheng Feng:

Cheng Feng is a leader in security surveillance software development and

manufacturing in China. Cheng Feng owns advanced video technology which

seamlessly integrates with other software and hardware applications.

Proprietary software owned by Cheng Feng includes the Security Resource

Integration Management Platform and the Security Integration Platform, which

are designed to integrate all security installations, both hardware and

software, onto a single operating platform to greatly improve the management

of the entire security system. Additionally, Cheng Feng has an established

brand name and 22 valuable distribution channels across China.

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, China Security manufactures, distributes,

installs and maintains security and surveillance systems through its wholly

owned subsidiary, Golden Group Corporation (Shenzhen) Limited. China Security

has a manufacturing facility located in Shenzhen and an R&D facility which

leverages an exclusive collaboration agreement with Beijing University. In

addition, China Security has built a diversified customer base through its

extensive sales and service network that includes 37 points of presence

throughout the PRC. To learn more about China Security, visit their website


Safe Harbor Statement:

This release contains certain "forward-looking statements" relating to the

business of China Security and its subsidiary companies, which can be

identified by the use of forward looking terminology such as "believes,

expects" or similar expressions. The forward looking statements contained in

this press release include statements regarding the ability of the Cheng Feng

acquisition to enhance China Security's core operations and provide

technological and cross selling benefits, the expectation that the acquisition

will be immediately accretive to earnings and revenue and Cheng Feng's ability

to meet the disclosed Make Good targets for 2006 and 2007. Such forward

looking statements involve known and unknown risks and uncertainties,

including, but are not limited to, general business conditions, managing

growth, and political and other business risk. All forward-looking statements

are expressly qualified in their entirety by this Cautionary Statement and the

risks and other factors detailed in the Company's reports filed with the

Securities and Exchange Commission. China Security and Surveillance Technology

Inc. undertakes no obligation to publicly update or revise any forward-looking

statements, whether as a result of new information, future events or

otherwise, except as may be required under applicable securities law.

Source: China Security & Surveillance Technology, Inc.
Related Stocks:
Keywords: Machinery